What happens to my installment agreement if I don’t file my taxes?

What happens to my Installment Agreement if I don’t file my taxes?


The answer is really quite simple. One of the things that you’re agreeing to when you enter into an Installment Agreement with the IRS is to continue on a current basis to file your taxes timely. You also agree to pay your taxes timely.

If for some reason you don’t file your tax return timely or you file your taxes and you owe money on your taxes that you can’t afford to pay, you’re going to default on the Installment Agreement.

Simply stated, that means the Installment Agreement is put aside and you no longer have a valid Installment Agreement with the IRS.

Accordingly, the IRS is going to take your balance, which, was not in enforced collection activity, and it’s going to kick it back into enforced collection activity.

You will then be subject to having your bank accounts levied and your wages garnished.

So remember if you do have an Installment Agreement, make sure to always file and pay your taxes.